The 1968 Falcon XT model featured a mild facelift, with a divided grille, and inset driving lights for the GT. The GT also replaced the thick lower body stripes of the XR with narrow stripes along the waistline from grille to tail light. The tail lights were still round but instead of the small round indicator of the XR, the XT model had a long indicator across the light. Otherwise all external bodypanels and bumpers were the same as the XR. Inside, the XT gained a 'strip' speedometer in place of the round gauges of the XR. The XT buyer also could choose a 188 cu in (3.1 L) or a 221 cu in (3.6 L) 6-cylinder engine. The 289 cu in (4.7 L) V8 engine was replaced by a new 302 cu in (4.9 L) unit.
A Fairlane model change to the ZB series in March 1968 saw the 200 grow to 221-cubic-inch (3.62 L) and the 289 grow to 302-cubic-inch (4.95 L), the top model remaining the Fairlane 500 with the larger engine. The Fairlane name badge on the rear guards is now in script rather than capitals as it had been on the ZA. The only notable external change is the tail-light design, again following the general look of the Falcon XT. The base model is now known as Fairlane Custom. Wheelbase 116".